Tether to Issue a Chinese Yuan-Pegged Stablecoin

Tether to Issue a Chinese Yuan-Pegged Stablecoin

According to Dong, his crypto management firm RenrenBit will be the first to invest in the project. He also talked about Tether’s relationship with Bitfinex, the world’s biggest crypto exchange by trade volume. Dong said Bitfinex and tether share the same CEO and financial officers.

It is worth noting Tether has not released an official statement on the matter at this time.

A controversial partnership

Bitfinex and Tether have been embroiled in a dispute with the New York Attorney General’s office (NYAG) of the alleged commingling of funds. NYAG accused the firm of participating in a cover-up in a desperate attempt to mask the loss of approximately $850 million in corporate and client funds. The firm never revealed the loss to its clients, the lawsuit states.

An investigation launched in 2018 by the AG also found out that the company has never released a public audit proving it has the reserves to back the coins in circulations.

Also, in May last year, the US Department of Justice opened criminal investigations on digital money manipulation. The department later released a 66-page report which revealed how rogue individuals used Tether to manipulate BTC prices on Bitfinex and to a lesser extent the Bittrex and Poloniex exchanges.

 

source: https://coindoo.com/tether-to-issue-a-chinese-yuan-pegged-stablecoin/

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